District School Board of Pasco County Schedule of Findings and Questioned Costs
SECTION I – SUMMARY OF AUDITORS’ RESULTS
Financial Statements:
1. Type of auditors’ report issued Unmodified
2. Internal control over financial reporting:
a. Material weaknesses identified? Yes
b. Significant deficiencies identified not considered to be material weaknesses? None reported
c. Noncompliance material to the financial statements noted? None
Federal Awards:
1. Type of auditors’ report issued on compliance for major programs Unmodified
2. Internal control over major programs:
a. Material weaknesses identified? None
b. Significant deficiencies identified not considered to be material weaknesses? None reported
3. Any audit findings disclosed that are required to be reported in
accordance with 2CFR section 200.516(a)? None
4. Identification of major programs:
Assistance Listing
Number Federal Program
10.553, 10.555, 10.559 COVID-19 Child Nutrition Cluster
84.425 COVID-19 Education Stabilization Fund
21.019 COVID-19 Coronavirus Relief Fund
5. Dollar threshold used to distinguish between type A and type B programs: $3,000,000
6. Auditee qualified as low-risk auditee under 2 CFR 200.520? No
SECTION II – FINANCIAL STATEMENT FINDINGS
Material Weakness
2021-001: Preparation of the Schedule of Expenditures of Federal Awards
Criteria: 2 CFR 200.510(b), requires the auditee to prepare a schedule of expenditures of federal awards for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502.
Condition: The District did not comply with the requirement to prepare an accurate schedule of expenditures of federal awards. The federal expenditures were understated on the SEFA in total by
$7,414,727 related to the Education Stabilization Fund, Assistance Listing Number 84.425D and the Coronavirus Relief Fund, Assistance Listing Number 21.019.
Cause: The District included expenditures of $1,179,133 on the June 30, 2021 schedule of expenditures of federal awards under the Education Stabilization Fund, Assistance Listing Number 84.425D, that relate to an award agreement executed in October 2021. Additionally, the District excluded expenditures of
$8,593,860 on the June 30, 2021 schedule of expenditures of federal awards under the Coronavirus Relief Fund, Assistance Listing Number 21.019.
Effect: The effect was an understatement of expenditures in total of $7,414,727.
Recommendation: The District should improve its financial reporting close process to review the schedule of expenditures of federal awards and grant agreements to ensure all federal awards are included and expenditures are reported in the appropriate fiscal year.
Response: See attached Corrective Action Plan.
SECTION III – FEDERAL AWARD FINDINGS
None noted.
SECTION IV – SUMMARY OF PRIOR YEAR AUDIT FINDINGS
Finding Number | Area | Description | Status |
2020-001 | Financial Statement Findings - Financial Reporting | Several financial reporting issues in the Annual Financial Report (AFR) that required revisions to be made by management in order to conform with generally accepted accounting policies (GAAP). | Corrected |
2020-002 | Financial Statement Findings - Estimated insurance claims payable | District personnel used a long-standing policy to estimate the insurance claims payable. The resulting estimated insurance claims payable did not reasonably reflect the ultimate cost of settling the claims based on reviewing recent claims history for the District. | Corrected |
Kurt S. Browning, Superintendent of Schools
7227 La"d O'Lake& B#( e)a%d + La"d O'Lake', F #%ida 34638
F/"4< 7, 2022
C"44, R*((5, & I1(4"0, LLC D"9*% A-9"4&=, CPA, C A, CGMA P"461&4
3000 B"<3246 D4+9&
S7*6& 500
T"03", FL 33607
D&"4 M4. A-9"4&=:
!& )"9& 4&9*&:&% 6)& F*1"1$+"- S6"6&0&16 F*1%,1(5 62 6)& '*1"1$*". "7%*6 "1% 284 4&53215& "1% $244&$6*9& "$6*215 4&."6&% 62 6)& '*1%+1(5 "4& .*56&% #&.2:.
Finding_ 12021-001:
T)& D*564*$6 :+-. 4&9+&: *65 342$&%74&5 62 &1574& ".- (4"165 ":"4%5 "4& 3423&4.< 4&3246&% 21 6)& S$)&%7-& 2' E;3&1%*674&5 2' F&%&4". A:"4%5.
A16*$*3"6&% C203-&6*21 D"6&: M"4$) 31, 2022
C216"$6 P&45215 R&53215+#-& '24 6)& C244&$6*9& A$6*21 P/"1:
K4*56&1 K":", A$$2716*1( M"1"(&4 J"<1& H"*4&, S&1+24 F*1"1$& M"1"(&4
We appreciate the opportunity to respond to these finds. After reviewing our response,
3.&"5& "%9*5& 0& +' <27 1&&% '746)&4 $-"4+'+$"6*21 24 "1< "%%*6*21"- "$6*21 21 274 3"46.
. B42:1+1(
S73&4+16&1%&16 2' S$)22.5
(813) 794-2000 , (352) 524-2000 , (727) 774-2000 - ***.$a'c#'ch##!'.#%g
207
INDEPENDENT AUDITORS’ MANAGEMENT LETTER
Chairman and Members of the
District School Board of Pasco County, Florida
Report on the Financial Statements
We have audited the financial statements of the District School Board of Pasco County, Florida, as of and for the fiscal year ended June 30, 2021, and have issued our report thereon dated February 7, 2022.
Auditors’ Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.800, Rules of the Auditor General.
Other Reporting Requirements
We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards, Independent Auditors’ Report on Compliance For Each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance, Schedule of Findings and Questioned Costs, and our Independent Accountants’ Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.800, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated February 7, 2022, should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.804(1)(f)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report.
Financial Condition and Management
Section 10.804(1)(f)2., Rules of the Auditor General, us to communicate whether or not the District School Board of Pasco County, Florida has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identify the specific condition(s) met. In connection with our audit, we determined that the District School Board of Pasco County, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.804(1)(f)5.a. and 10.805(7), Rules of the Auditor General, we applied financial condition assessment procedures for the District School Board of Pasco County, Florida. It is management’s responsibility to monitor the District School Board of Pasco County, Florida’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.
Section 10.804(1)(f)3., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we recommend management compare revenue accrual estimates to actual revenue received during the period of availability subsequent to year-end.
Transparency
Section 10.804(1)(f)6., Rules of the Auditor General, requires that we report the communicate the results of our determination as to whether the District School Board of Pasco County, Florida maintains on its Web site the information specified in Section 1011.035, Florida Statutes. (Section 1011.035, Florida Statutes, provides that district school boards include a plain language version of each proposed, tentative, and official budget that describes each budget item in terms that are easily understandable to the public.) In connection with our audit, we determined that the District School Board of Pasco County, Florida maintained on its Web site the information specified in Section 1011.035, Florida Statutes.
Additional Matters
Section 10.804(1)(f)4., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the District School Board members, and applicable management and is not intended to be and should not be used by anyone other than these specified parties.
CARR, RIGGS & INGRAM, LLC
Tampa, Florida February 7, 2022
ATTESTATION REPORT ON COMPLIANCE WITH SECTION 218.415 FLORIDA STATUES
Chairman and Members of the
District School Board of Pasco County, Florida
We have examined District School Board of Pasco County, Florida’s (the District) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended June 30, 2021. Management is responsible for the District’s compliance with those requirements. Our responsibility is to express an opinion on the District’s compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing and extent of the procedures selected depend on our judgement, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
Our examination does not provide a legal determination on the District’s compliance with specified requirements.
In our opinion, the District complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended June 30, 2021.
This report is intended solely for the information and use of the District and the Auditor General, State of Florida and is not intended to be, and should not be, used by anyone other than these specified parties.
CARR, RIGGS & INGRAM, LLC
Tampa, Florida February 7, 2022